A guide to Forex trading in Poland and its FX brokers

What is the first thing that comes to your mind when you think about Poland? You will probably start thinking about its rich history – from one of the strongest kingdoms in Central Europe to part of the USSR, and finally, the independent state and a crucial member of the European Union (EU). Your mind might also go into imagining the country’s vibrant culture, unique cuisine ( it is not called the “potato country” for no reason!), and fascinating sightseeing that attracts millions of tourists from all over the world every year. However, one thing that you might oversee is the Polish Forex trading market, which is actually one of the strongest and most promising in Europe.

Poland has a population of over 38.5 billion people, and its GDP reaches 585.5 billion USD, which, consequently, makes it one of the largest economies in the EU region. On top of that, Poland is the home to one of the oldest stock exchanges – the Warsaw stock exchange that was first founded way back in 1817. It does not, therefore, come as a surprise that the county has managed to create a flourishing FX market that makes up for the large of the Polish national economy. In the guide that you are about to read we will assess the best Forex brokers in Poland, the country’s regulatory environment, and the opportunities for profit that it can offer to the traders.

Polish Forex brokers that won’t let you down

How does one go about choosing the broker that is right for them? This is the most tricky, yet the most important question that every trader should be asking themselves – and they most definitely do. Whether you are a complete beginner or have some prior experience in Forex trading – the process of singling out the broker that works best for you among the variety available at the market is always tough and stressful. It is common knowledge that the failure to make the right choice may result in significant financial losses lost opportunities, or, in the worst-case scenario – scam schemes and a lifetime of debt.

Unfortunately, there is no overarching answer to how best to approach the procedure of looking for the brokerage, however, most of the field experts agree that it will require a significant amount of time and effort dedicated to research, comparison, and the final decision-making. For the purpose of making this task a little easier for you, we have created a shortlist of the best Polish Forex brokers, their requirements for the traders, and the opportunities for profit that they provide to their clients. We sincerely hope that by publishing this list we ease some burden off the shoulders of the traders who are anxiously looking to make the right choice.

XM Group

XM Group Forex Review

Minimum deposit

5 USD

Licences

CySEC, IFSC, ASIC

Maximum leverage

1:30*

US Clients

No

Forex.com

Forex.com Review

Minimum deposit

100 currency units

Licences

CIMA, FCA, NFA

Maximum leverage

1:200

US Clients

Yes

IQ Option

IQ Option Review – can the broker be trusted?

Minimum deposit

10 USD

Licences

CySEC

Maximum leverage

1:1000

US Clients

No

Why do top Polish brokers need a sturdy license?

When it comes to overseeing the FX trading market, governments, and regulatory bodies from all across the world are often faced with a tough choice. They can either go for tough regulations, which will, indeed, ensure maximum safety of the traders and reduce the possibilities of scamming to little to none, however, will ultimately jeopardize the overall development of the market. On the other hand, a more relaxed approach can be taken, which is bound to make the Forex trading market gro at a rapid speed, but would, simultaneously, create a perfect environment for the fraud schemes to flourish, So what should one do about it? Well, the answer to this is both simple and complicated at the same time – the regulatory entities should be striving to find the perfect balance between those two.

When it comes to Poland, one can easily say that if the country has not achieved that perfect balance yet, it is, indeed, getting very close to it. There are enough measures in place to make sure that the Forex trading brokers in Poland are operating out of the best interests of their clients, yet the FX market in Poland does not cease to grow. Below we will have a closer look at the main Polish regulatory body and the ways in which it ensures the smooth and secure functioning of the local brokers and market as a whole.

Financial Supervision Authority and its implications

The main regulatory body in Poland is the Komisja Nadzoru Finansowego (KNF), or the Polish Financial Supervision Authority (PFSA). Originally established in 2006, this regulatory body replaced the Insurance and Pension Funds Supervisory Commission and the Securities and Exchange Commission that were both abolished as soon as the PFSA was created. The main function of this entity is to facilitate transparency, security, and accountability of the financial sectors that it oversees. The scope of its activity extends towards banking, payment services, insurance, pensions, credit unions, commodities, and, of course, Forex trading. As we have already mentioned above, the FX market in Poland has come a long way to become what it is today – a strong and vibrant segment of the national economy.

The PFSA has played a crucial role in the process of becoming what is now known as one of the most attractive Forex trading markets in Europe. Despite being one of the oldest in Europe, it has been undergoing a number of major hits – such as the collapse of the Soviet Union and the global financial crisis of 2008. Nevertheless, the PFSA has managed to come up with an efficient strategy for the market’s reestablishment. Such a strategy included a combination of relevant security regulations and measures aimed at ensuring sustainable growth of the industry. Below, we will discuss what exactly those measures were, and what made them so beneficial for the operations of the Forex trading brokers in Poland.

How does a broker obtain the PFSA license?

The issuing of licenses to the local brokers is an integral part of the main functions that various regulatory bodies across the world have to perform. But what does it take for the broker to obtain a license from the PFSA?  Well, it is necessary to say that the process of obtaining it is pretty demanding. The broker will have to go out of their way to prove to the regulatory body that they are both qualified to offer their services, and will do that in the most secure way possible. The high demands and the complexity of the overall procedure ultimately means that only the best of the best are permitted to operate within the country, and, thus, both the FX traders enjoy a significant degree of safety, and the Polish Forex trading market maintains its high standards.

However, while looking through a variety of Forex trading brokers in Poland, one might find that a lot of them are neither physically based in the country, nor licensed by the PFSA. Well, there is nothing surprising or worrisome about that. Poland is a member of the EU, and, thus, is subjected to the standards issued by Europe’s Markets in Financial Instruments Directive (MiFID). According to those standards, brokers based in the EU can obtain their license once, from any of the region’s regulatory bodies – and such license would be sufficient for the brokerages to provide their services in various EU countries without having to obtain a new license in every single one of them. This is by no means a security concern, as all of the EU-based regulatory entities maintain high standards of the licensing process, and if the broker has managed to meet them, it means that it is, indeed, trustworthy.

Actual policies that make Polish brokers stand out

Margin requirements

As with anything that requires minimum input and has the potential to translate into large gains, leverages in Forex trading are subject to enormous controversy and a lot of debate. What it mainly encompasses is that without having to deposit a lot of money, you might end up with the gains that are significantly high. However, while the experienced traders are capable of benefiting from such an astonishing tool, beginners can end up with devasting losses and indebted to their brokers. The main argument in favor of leverages is that as legal adults, traders should be able to make their own decision on whether or not they want to involve themselves in such a risky enterprise. Nevertheless, having witnessed that some of over 80% of the overall financial losses made during the trading sessions resulted directly from the misuse of leverages, the policymakers and regulatory entities of many countries came to the conclusion that this tool is in scarce need of some regulation.

When it comes to Poland, the cap on leverages is significantly higher than that of the other EU counties – so much so that it continues to receive criticism from the European Securities And Market Authorities (ESMA), that strongly believes that the PFSA’s maximum approved leverage of 100:1 is way higher than the de facto 50:1, or even 30:1 that most of the European regulatory bodies end up with.  However, it has to be noted that despite being very high, such leverage is not available to every trader. The PFSA has its own system of classifying traders based on their experience. The trader that will be classified as suitable for the highest possible leverage in the country will have to prove their experience by demonstrating that in the last 48 month they have managed to make at least 40 major transactions with a variety of FOrex assets, at least 10 transactions with the Contracts For Difference (CFDs) worth 50 000 EUR or an equivalent, and demonstrate their overall knowledge and skill, preferably with some sort of a certificate that they have managed to obtain. For those who fail to meet all of the aforementioned conditions, the maximum leverage available will amount to 50:1. On top of that, the 100:1 leverage in Poland can only be used for the popular currency pairs or main stock indices, such as gold or NASDAQ.

The way in which PFSA approaches regulatory measures on leverages is the best illustration of its overall approach to the FX market and the Forex trading brokers in Poland.  the regulatory body treats this segment of the national economy with all the strictness necessary to sustain customer security, all while not preventing the market growth and without limiting the opportunities for profits.

Being accountable for corporate transparency

Transparency of each financial market that the PFSA oversees is actually listed down as one of the body’s main values and goals. Similarly, when it comes to the Forex market, the entity stands by its ambition to strive for complete transparency. There are a number of ways in which the PSFA reinforces the accountability of its licensees.  First of all, Forex trading brokers in Poland who wish to obtain an official license of PSFA are required to submit comprehensive information on its qualifications, qualifications of the senior members of staff, adequate financial standing, and much more. Once the license is granted, the brokers are obliged to conduct regular audits and submit the final reports for the periodic review by the PSFA. The body then decides whether all of its regulations and conditions are followed, and whether or not the broker is engaging in some sort of malicious activity.

No bonus promotions

It is no mystery that every broker is aiming to expand its customer base and attract more traders. A lot of tools come in handy in doing that, with the bonuses and promotions being by far the most efficient. A broker may offer its clients either a welcome, or a refill bonus, or, in some cases, even both. A welcome bonus is usually gifted to the new traders, while a refill bonus is issued periodically to the returning clients. Many traders will base their final decision of which broker to choose based not the availability of such kickstarters, thus, we would like to note the provision of bonuses and promotions is strictly prohibited in Poland. Nonetheless, as previously mentioned, some of the best Polish Forex brokers offer other beneficial tools, such as relatively high leverages.

How easy is it to get started with Forex brokers in Poland?

Anyone who has reached the age of a legally recognized adult can start trading Forex in Poland. The only real conditions, other then legal adulthood, that the potential trader will have to meet are the requirements of the broker of their choice. Moreover, the cost of getting started is no cost at all – it is completely free to join a certain broker that you will proceed to work with. The only financial input required from you is the initial deposit, which will also be determined by your broker. Some of the top Forex brokers in Poland require a minimum deposit of as little as 5 USD, while others will be asking you to deposit a minimum of 500 USD. You should, therefore, always do your duly research in order to determine what the brokers’ requirements are and whether they are suitable for you.

Having assessed the state of the Polish FX market, we can say, with all confidence, that it is worth exploring. One of the oldest markets in the world, Forex trading in Poland has a plentiful of opportunities for lucrative profits. The overall environment is both that of vibrant development and growth, as well as sustainable security that is constantly reinforced by the local regulatory body – the PFSA. Finally, the Polish economy is one of the strongest in the region, which means that it is definitely worth utilizing it. We highly suggest that Polish citizens and Forex trading enthusiasts explore the variety of offers provided by some of the best Forex brokers in Poland.